More Insanity Over Trump’s Ultimatums To Russia | Armstrong Economics
As expected, Russia essentially told Trump to shove it. I believe that Trump gave his 10-12 day ultimatum as part of pressure from the EY, which is desperate for war. All I can say is that Trump is playing a perilous game, and he is on the wrong side. If Trump were serious about PEACE, then he should demand that Europe simply honor the Minsk Agreement, and the killing would stop within the hour.
The Kremlin spokesman Dmitry Peskov was gracious. He respectfully said that Moscow has “taken into account President Trump’s statement yesterday.”Effectively, Peskov made it clear that Russia will continue to engage in fighting in Ukraine. Peskov added that Moscow remains “committed to the peace process to resolve the conflict around Ukraine and to ensure our interests in the course of this settlement,” according to TASS.
Let’s be honest here. Is Trump blind? Putin agreed to two peace deals. The first time, Merkel admitted the West lied and had no intention of honoring it. Then another was about to be signed, and Boris Johnson rushed to Kiev to instruct Zelensky that he was not allowed to sign any peace deal. Excuse me, but if I were Putin, there is no way you are going to fool me a third time.
While Peskov said that Russia was still interested in rebuilding ties with the United States, the issue is not currently on the table. In a post on X, former Russian President Dmitry Medvedev, the deputy chairman of the Security Council of the Russian Federation, said Trump was playing “a game of ultimatums” that could lead to a war involving the United States. This is what I have been warning about. Everyone knows this is NOT a war between Russia and Ukraine. This is a war between Russia and NATO.
Medvedev pointed out that “Each new ultimatum is a threat and a step towards war. Not between Russia and Ukraine, but with [Trump’s] own country.” It was Trump who indicated that he was not interested in more talks with Putin. He said sanctions and tariffs would be used as penalties for Moscow if it did not meet Trump’s demands. Sanctions and tariffs will only further ensure an economic depression for the EU into 2028. Trump has gone off the rails, threatening sanctions on both Russia and buyers of its exports unless progress is made.
This will not be simply a trade war. This is the same tactic that FDR used on Japan that led to WWII. So Trump is going to put sanctions on India and China for buying Russian oil? I do not know who is advising Trump, but even threatening this type of action has already resulted in the formation of BRICS. Putting sanctions on India will be a huge mistake. As of mid-2024, India holds about $240 billion in U.S. debt, making it one of the top 15 foreign holders of U.S. Treasury securities. For comparison, China holds around $770 billion. At the same time, India has been adjusting its holdings of U.S. debt, though the available data does not explicitly state large-scale sales. India is promoting rupee-denominated borrowing (e.g., Masala Bonds) and deepening its sustainable debt market (now worth $55.9 billion) to reduce reliance on foreign currency debt. It appears that India is in a position to start dumping US debt if Trump dares to impose sanctions, and this will result in a declining dollar against the rupee from 2025.
